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Somaliland set to strike big oil as exploration set to begin

November 2, 2012 · 3693318 Comments2012-11-02+06%3A13%3A43Qalinle+Hussein

Wanted: investors for small African nation with good oil and mineral potential – no seat at the United Nations but history of independence in rough neighborhood.

The break-away nation of Somaliland is a tough sell but the announcement this week that serious hydrocarbon exploration is about to kick off there shows that oil talks, regardless of political status.

For Somaliland, an internationally unrecognised state of 3.5 million people that declared independence from Somalia in 1991, it promises to be a game changer.

“We need to find a way to earn hard currency besides selling goats, sheep and camels to Arabs. This is the only way we earn hard currency now,” Hussein Abdi Dualeh, the minister of energy and mining, told Reuters on the sidelines of an African oil conference in South Africa organised by Global Pacific & Partners.

Ophir Energy Plc, Australia-based Jacka Resources and Genel Energy, which is headed by former BP chief executive Tony Hayward, are all about to start exploration in Somaliland.

Dualeh said the investments would be worth tens of millions of dollars, small change in the global oil industry but a windfall to a government that only has a budget of $120 million.

Gas discoveries off Mozambique and Tanzania and oil finds in Uganda and Kenya have sparked a hydrocarbon scramble into previously unexplored parts of Africa.

Oil companies often go where other investors fear to tread, including other unrecognized statelets such as Kurdistan.

“Oil companies are concerned about geology, not politics,” Dualeh said.

He also said Somaliland offered investors something sorely lacking in anarchic Somalia: stability.

“We control our borders, we have a police force and military. We have had four governments come and go with democratic elections,” he said.

The territory has not exactly been an oasis of peace, however. Fighting erupted there in January after the leaders of the northern regions of Sool, Sanaag and Cayn decided to band together into a new state called Khaatumo.

Somaliland’s troops have since clashed with militia fighters loyal to Khaatumo, with reports of dozens of casualties.

And what about pirates?

“The pirate problem is not off our coast, it starts in the Indian Ocean with Somalia. We have a nimble coast guard that does its job with limited resources,” Dualeh said.

If oil is discovered, Somaliland would also welcome the steady stream of revenue that would follow.

Dualeh said livestock sales across the Red Sea to Saudi Arabia followed a seasonal pattern with sales peaking during the annual haj pilgrimage.

“We need to get stuff out of the ground. Selling livestock during the haj is not sustainable,” he said.

- REUTERS

Photo: Ophir blocks in Somaliland (Ophir Resources)

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By Qalinle Hussein

Tags: Genel Energy, Jacka Resources, Ophir Energy, Somaliland

Ahmed says:

Correction needed;

"The territory has not exactly been an oasis of peace, however. Fighting erupted there in January after the leaders of the northern regions of Sool, Sanaag and Cayn decided to band together into a new state called Khaatumo."

Fight only erupted in a village called Buuhoodle along the Ethopian border (see Somaliland Map) and there is no place call Cayn and Sanaag? what has Sanaag got to do with this? The Author needs a geography lesson ASAP!

4:08 am on November 2, 2012

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amal says:

Map of Somaliland is beautiful, it will soon prevail and be part of the rest of the UN countries insha Allah. May Allah protect Somaliland. We will fight till the end, where there is will there is way indeed.

4:11 am on November 2, 2012

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Buuxiye says:

Amiin

Insha''allah Khair may allah give somaliland that which is best for it and it's population independent from the chaos of pirates and extremists of Somalia.

Terror groups in eastern Somaliland have been neutralised and Both SSC and Khaatumo troops have accepted to live in peace and abide by Somaliland Law.

5:32 am on November 2, 2012

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F.A. says:

Mashallah. May Allah help us to find oil in our lands, so that we all can go back home and live happily after with our family s in Somaliland. And may Somalia find peace a prosperaty too so thar they all can live happily ever after too. May Allah ease our problems and bless our lands in Somaliland and Somalia. Amiin and thank you Allah for giving us all those chances to improve our lives.

7:22 am on November 2, 2012

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Mr Saleban says:

this is what I call a nonsense, Touch one inch of Harti territory (khaatumo state) and this will be the end of your break way project. this time we will unite Puntland and Khaatumo state, Faroole being out of the way soon, there won't any problem between us.

they couldn't handle my very subdivision clan In Kalshaale and they have the guts to talk about controlling non-exist borders.

11:26 am on November 2, 2012

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wanlaweyn says:

amal

make up you mind. one day you are with somaliweyn next you are embracing tribal maps. that map is not even british somaliland map. typical unruly somali people drawing any map when they are high on khat

4:03 pm on November 2, 2012

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- amal says:
  
  Look mate it's not up to anyone what I embrace. I was with Somaliweyn because I actually believed in it and was excited about Somali nationalism and only to find out that Somali nationalism is dead and Somalis hate eachother and cannot share or be forced to share a country. I can only be with Somaliweyn when the majority of Somaliland people happily decide to accept to be a state of Somalia else there cannot be union or Somaliweyn at the expense of Somalilanders who refuse it nor can we be dictated from Mogadishu. Both the people and the government got one voice and that is INDEPENDENCE.
  
  Somaliland people are in a battle for their self-determination to be accepted so why is you or anyone else wasting their time. You may try to convince them but their destiny is in their hands and they were waiting for it for a long time and are still waiting and hoping. Why do you guys even want people who don't want you.
  
  * About the Map, it only looks big because its got our hawd region included and maybe the top part roughly appears as if it skews to the right so what's the problem.
  
  Somalia will need to respect the choice of Somaliland people just the same way I believe Somaliland should accept the choice of Khatumos. There is no force, hadi kale miya la isga laad laadaya forever, forget big and powerful savage Somalis need to just bloody survive. If it wasn't for bloody savage Somalis I would have preferred Somaliweyn
  
  At the end of the day people's wish will prevail my friend.
  
  p.s Also I was disgusted to see how some of the Somalia anti-Somaliland was behaving when they thought Somaliland was gonna unite. I wonder is that the attitude we will get if we do unite.
  
  6:20 pm on November 2, 2012
  
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- amal says:
  
  Also to be honest I cannot stomach shattering the only dream Somaliland people had and still have and wish to become an independent country. If they choose union then fair enough if not then we will work hard for their dream to become reality.
  
  Peace to Somalia is all your people need to worry about, brov, you got your recognized country.
  
  12:08 pm on November 3, 2012
  
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- Kayse says:
  
  Amal is a unionist but you have to understand one thing; she is a girl hence the separatists take her on a guilt trip. They use memories of war to make her feel sorry for them. She is all heart and heart is like a baxaaraasaaf tree….if the wind decides to blow north, the tree will lean north. If they tell her they got killed, raped, and all that grieving game; she is there feeling sorry for them and offering them some comfort.
  
  My gal is all unionist in her head but she needs to understand we can't allow emotions to cloud our judgements. If we feel sorry for everyone, we will never get any where. In society at times you have to step on some heads to raise up. Personally, I make no apology if I have to step on all their qaat filled heads.
  
  4:21 pm on November 3, 2012
  
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Buuxiye says:

Majeerteen inay majnuun wada tahaan marag u haystaaye Waa niman masakhan oon ahayn midhaha Daaroode Waa niman siddii Moolaadhabe miciya dheerdheere Waa niman maddada oo cir weyn oo masiiba ahe Waa niman gabooye ku biirsadey iyadoo la ogyahey Bari ilaa mudug lagu ogeyn midho daroode…

:)

4:25 pm on November 2, 2012

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- abdul says:
  
  MATE, no one can understand your somali language here,need to get intensive training somali language school soon.
  
  NOW it looks you obsessed with MJ, were you member of Their SERVANT.
  
  3:53 am on November 3, 2012
  
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Khaatumo citizen says:

Qabilism aside I want get some of that oil money. (booking my next flight to Berbera) lol

Besides this map is fake as my acrylic nails :)

7:07 pm on November 2, 2012

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Osman Qaal says:

saylici,
The UN doesn't register a nation. Nations voluntarily submit their application to the UN. Please educate yourself how the world functions before rush to comment..

7:19 pm on November 2, 2012

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- Dhuguse says:
  
  saylici
  You are the one who needs to go back to his old village school for the following reasons:
  a) Somaliland had a defined and recognized borders before the formation of United Nations in 1946,
  
  b) 35 countries including the permanent countries of UN Security Council recognized Somaliland as a sovereign country on 26 June 1960, therefore, is not a new country to UN,
  
  c) the UN just waiting the outcome of the anticipated dialogue between Somaliland and Somlia in the coming months, and
  
  d) there are many countries which are not a member of UN, e.g SWITZERLAND (you can take the rest for homework).
  
  11:10 am on November 3, 2012
  
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Khatumo Citizen says:

Mr Saleban I kinda disagree with you bro, deep down you know Dhulbahante will never be completely part of Puntland there will always be some who's going run to Hargaisa when things go wrong just like Landers run to Mogadishu, they will never be part of Somaliland either since Majority of em believe in Hartinimo or Somalinimo whatever you like to call it, So I personally think we should have our own State without siding anyone and sort out our disunity. that sounds fair.

we should also share both Puntland and Somaliland's oil and keep ours since they both claim us to be part of their enclave waan ka faiidaysanaa dee loool no offence PuntlandGeezer. :)

7:31 pm on November 2, 2012

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askar says:

MR saleban.

Agree with you dhulos small traitors should be captured and hang,faroole is going soon or he will be shut.beware This person by The name khaatumo citizen not from This area imitator.

3:39 am on November 3, 2012

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- Mr Saleban says:
  
  Any Dhulbahante who does not obey the law and don't respect the majority dicision is a traitor and will be charged with treason, I careless if he is my own brother.
  
  7:32 am on November 3, 2012
  
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Ahmed G. Farah says:

Dear Hon. Hussein
Congratulations to all Somalilanders and especially to You Mr. Minister for fetching that far and turning the unrealistic discovery of our Hydrocarbons into factual and productive achievements. Hope things will work with you and Somaliland may endup into prosperous nations.
May Allah accept our wishes.
Thanks Mr. Minister

7:19 am on March 14, 2013

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